Arch combined ratio soars to 101.8% in Q2 on cat losses
Bermuda-based re/insurer Arch Capital Group's combined ratio jumped in second quarter 2020 while the net profit plummeted nearly 37 percent due to cat losses.
The company witnessed increases in property, energy, marine and aviation and professional lines, partly due to new business opportunities, rate increases and growth in existing accounts. However, the improvement was partially offset by a decrease in travel business due to the ongoing impact of the COVID-19 global pandemic.
Arch reported net profit of $288.4 million for the second quarter of 2020, compared with a profit of $458.6 million in the same period a year ago.
Gross written premiums increased in Q2 2020 to nearly $2.3 billion, 19.6 percent up from $1.94 billion in the same period of the previous year.
Arch said it had made pre-tax current accident year catastrophic losses in its re/insurance segments, net of reinsurance and reinstatement premiums, of $207.2 million, including $173.1 million related to COVID-19.
The re/insurer's combined ratio deteriorated to 101.8 percent in the quarter, compared with 80.4 percent in Q2 2019.
